2024 (3) TMI 1466

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed under service tax despite that they are liable to pay service tax under reverse charge mechanism on royalty charges paid to the state government. Investigation was conducted based on the said intelligence, and it was found that Service tax amounting to Rs. 1,90,42,457/- has not been paid by the appellant during the period 01.04.2016 to 30.06.2017, and by not paying the same, the appellant has actually suppressed the fact of their liability towards the government Exchequer. With these observations, a Show Cause Notice number 144134/2021 dated 25th March 2021 was issued involving extended period of limitation and was served upon the appellant proposing the recovery of the aforesaid amount (1,90,42,457/-) of service tax along with the inter....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the issue involved in the present case has been decided by this Tribunal in the case of M/s. Madhya Pradesh State Mining Corporation Limited versus Principal Commissioner, CGST and Central Excise, Bhopal dated 09.05.2023 in Service Tax Appeal No. 54002 of 2018. The order under challenge is prayed to be set aside in the light of the said decision. Appeal is, accordingly, prayed to be allowed. 4. Ld. Departmental Representative on the other hand has re-iterated the findings of the order under challenge specifically in Para-15 and 16 of the impugned order. Decision of M/s. Madhya Pradesh State Mining Corporation, (supra) is however conceded. Finally, impressing upon no infirmity in the order, appeal is prayed to be dismissed. 5. Having heard....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....llegedly receiving service concerning grant of mining rights is held unsustainable. It has been held in the said case as follows:- "16. Thus, for the purpose of levying service tax, the taxable event is construed as the time when the service is provided or agreed to be provided. Thus, in order to determine whether levy of tax is applicable on a particular activity, it is necessary to determine the point of time when such activity is provided or agreed to be provided. In the present case, the agreement between the appellant and State Government for grant of mining rights was executed on 02.01.2016 and on this date, the transactions involving assignment of right to use natural resource was not taxable." 7. In the present case also the peri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....harges paid by them to the state government under reverse charge mechanism even for the period beyond April 2016. However, when this decision was challenged before Supreme Court by way of special leave to appeal No. 3150-3155 of 2018, the Hon'ble Supreme Court vide order dated 05.02.2018 has granted a stay against the said order directing that until further orders payment of service tax for grant of mining lease/royalty by the petitioners shall remain stayed. The said decision has been followed by the High Court of Gujarat in the matter of Gujmin Industry Association versus Union of India reported as 2019 (29) GSTL 11 and High Court of Goa in the case of Goa Mining Association and Anr. versus Union of India and others in Writ Petition No. 1....